Read the report carefully and answer the questions based on the report:, Consumer’s Budget, ₹ 100, Price of Good X, ₹ 5 per unit, Price of Good Y, ₹ 10 per unit On the basis of given data, the slope of the price line will be _____ Option 1: 0.5 Option 2: 2 Option 3: 5 Option 4: 10

Answer: 0.5. Solution: The slope of the budget line (price line) is given by: Slope = P_x/P_y = 5/10 = 0.5 The budget line endpoints are: - If all income spent on X: 100/5 = 20 units of X - If all income spent on Y: 100/10 = 10 units of Y So the slope = 10/20 = 0.5

Micro

Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report:

Consumer’s Budget	₹ 100
Price of Good X	₹ 5 per unit
Price of Good Y	₹ 10 per unit

On the basis of given data, the slope of the price line will be _________

0.5

✅ Correct Option: 1

The slope of the budget line (price line) is given by:

$\text{Slope} = \frac{P_x}{P_y} = \frac{5}{10} = 0.5$

The budget line endpoints are:

If all income spent on X: $\frac{100}{5} = 20$ units of X
If all income spent on Y: $\frac{100}{10} = 10$ units of Y

So the slope $= \frac{10}{20} = 0.5$

Question 41

How much of Good X can the consumer consume if she spends her entire income on that good?

Question 42

How much units of Good Y can the consumer consume if she spends her entire income on that good?

Question 43

In a situation when MRSxy > Px / Py, the consumer would react by:

Question 45

On the basis of given data above, the correct equation of price line will be.

On the basis of given data, the slope of the price line will be _________

Solution

More from this set:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)